WAYNESBORO BOROUGH AUTHORITY

JANUARY 16, 2007

MINUTES

Authority Chairman Jon Fleagle called the regularly scheduled meeting of the Waynesboro Borough Authority to order at 7:30 p.m. with the following in attendance:

Borough Authority Members – Jon Fleagle, S. Allen Stine, Christopher Snively, William Pflager and Lee Layman

Borough Staff – S. Leiter Pryor, Director of Borough Utilities

D. Lloyd Reichard, II, Authority Solicitor

Scott Crum, Draftsman-Inspector

Public In Attendance – Richard Gsell and Ann Anderson (CDEG Engineering)

RE-ORGANIZATIONAL MEETING - ELECT 2007 OFFICERS: Lee Layman made a motion that the current slate of officers remain the same for the year 2007. Christopher Snively seconded. Lee Layman made a motion to close the nominations. Christopher Snively seconded; the motion passed unanimously. Accordingly, the officers are as follows:

Chairman – Jon Fleagle

Vice-Chairman – S. Allen Stine

Secretary – Christopher Snively

Treasurer – Lee Layman

APPROVE MINUTES: S. Allen Stine made a motion to approve the minutes of the November 15, 2006 regular meeting, as written. William Pflager seconded; the motion passed unanimously.

SOURCE DEVELOPMENT UPDATE: Mr. Pryor reported that the final design for Well #2 is 95% complete; and he has been advised that we could be ready to advertise the bid by July 2007 and award the bid in October 2007, with a construction start date of January 2008. Mr Pryor checked into financing options – Pennvest interest rates currently are 2.428% for the first 5 years, then 3.035% for the final 15 years. The drawback to a Pennvest loan is the additional engineering and administration cost. He has contacted several banks to obtain conventional financing options, with no response as of yet. Lloyd Reichard stated that any loan would have to be approved by the bond holders pursuant to the2004 trust indenture. Jon Fleagle asked Mr. Pryor to do a cost analyst of the financing options and provide the current balances in the water and sewer funds. Mr. Pryor showed the Authority the construction plans for the Well #2 project. Allen Stine wants the driveway to be straight from the building to the road. Mr. Pryor will inform the engineers of this change. Jon Fleagle would like to have a workshop with Gannett Fleming to go over these plans and talk about the operations of the treatment process.

TURKEY HILL (Ann Anderson, CDEG): Ann Anderson presented plans for the William Gsell property, located on West Main Street, where he is proposing a Turkey Hill convenience store and a strip mall (with the existing laundromat relocated). The plan shows three (3) parcels to be leased. The parcel on the west will use the existing sewer and water lateral from West Main Street. The Turkey Hill parcel will be tapping onto a new 6" water line proposed in Cumberland Valley Avenue. The sewer will be in a private lateral running on Gsell’s property to the north property line. The laundromat parcel will be tapping onto the existing 4" water line in Cumberland Valley Avenue. The sewer lateral for this parcel is a proposed mnhole in Cumberland Valley Avenue. Scott Crum mentioned that a new 6" water line was going to be installed from the end of the existing 4" line located in the northern portion of CV Avenue to Main Street. This main extension was a 2006 budgeted capital improvement project. The work for this line will be starting possibly next week. Allen Stine questioned the tapping of a 4" fire line from a 4" water line. There is an agreement between the Gsells, the Borough of Waynesboro and the WBA providing for a 4" fire line and an 8" sewer line to be stubbed 5' onto the property. No tap fees are to be collected until the end user connects to the service lines. The location of said lines are to be mutually agreed upon. Scott Crum mentioned that the 4" fire service line is close to the intersection of West North Street, where there is a 6" water main. A 4" line that close to a 6" main would have adequate volumes for fire service. Jon Fleagle asked Ann Anderson what they were looking for tonight. She stated that they were looking for a basic understanding of the design, because of the water line construction beginning soon and the plans being finalized for the Planning Commission. Jon Fleagle stated that they have no problem with the concept of the development – the only concern he has is with the Borough deciding what they are going to do. He continued, saying that sewer and water will be available – he is just unsure what lines will be in Cumberland Valley Avenue. Allen Stine asked what is in the agreement and who is to do what. Jon Fleagle stated that the agreement does say what services will be made available and who is responsible for them. Jon Fleagle questioned the running of a 6" water line to Main Street and why the 4" wasn’t extended. Scott Crum stated that the price for a 6" water line makes it more cost-effective to install (2006 pipe bid pricing indicated that 6" pipe was actually cheaper than 4" pipe.) He also mentioned that this project is a “roll-over” from the previous year’s budgets.

Ann Anderson asked about the existing EDU’s of the laundromat – the current is about 16, with a proposed of 22 EDU’s. The Authority stated that the increase in capacity was available, and that they may submit a post card exemption. She then asked if any EDU’s need to be allocated at this time. Mr. Pryor stated that we do not allocate them, however the increase in EDU’s will impact the sewer tap fee collected.

Jon Fleagle stated that no work is to be done in Cumberland Valley Avenue until the Authority is sure of what is being done and by whom.

HOMETOWN HOMES (UTILITY SERVICE): Mr. Pryor presented plans for Hometown Homes. The plans show shared private sewer laterals across the front of the proposed townhouses outside of the street right-of-way. It was discussed that if they are going to cut the road for water services, why not for the sewer services? Jon Fleagle showed where on S. Church Street they are cutting the road for half of the sanitary laterals already. Allen Stine asked if they could run water and sewer in the rear of the properties in a utility easement alongside of the new storm sewer line, that would eliminate all but two (2) road cuts. Mr. Pryor was instructed to contact the designer and relay these concerns.

FTPE REPORT- PADEP: Mr. Pryor presented the Filter Plant Performance Evaluation from the Pennsylvania Department of Environmental Protection. Jon Fleagle mentioned that we received a commendable rating; and instructed Mr. Pryor to write a letter to the Water Plant personnel thanking them for the great job, and to contact the newspaper for an article on this. Mr. Pryor reported that there was a few comments in the report – one of which is to cut the re-circulated water to 5% (we currently re-circulate about 10%, which is within current DEP requirements for a non-conventional filtration plant) .

SMITH ELLIOTT KEARNS AND COMPANY - (Multi-Year Audit Proposal): Mr. Pryor presented a letter from Smith Elliott Kearns and Company for a three-year quotation for audit services. The quote indicates a 3% increase annually. S. Allen Stine made a motion to accept the proposal. The motion was seconded by Lee Layman. Jon Fleagle stated that after the three years, we should check for other proposals. The motion passed unanimously.

WATER AND SEWER FUND TRANSFERS: Lee Layman made a motion to authorize Mr. Pryor to make the appropriate transfers in the water and sewer funds, pursuant the 2004 Guaranteed Water and Sewer Revenue Bond trust indenture . The motion was seconded by Chris Snively, and passed unanimously.

WATER MAIN EXTENSION AGREEMENT (Waynesboro Area School District): Mr Pryor presented a Water Main Extension Agreement for the Waynesboro Area Senior High School. William Pflager made a motion to approve the agreement, contingent on collection of the appropriate fees and the execution of a Right-of-Way Agreement with the Borough of Waynesboro for across East Second Street. The motion was seconded by Lee Layman and passed unanimously.

WEST FIFTH STREET BACK FLOW PREVENTERS: Mr. Pryor presented a letter from Kevin Grubbs, Head of Borough Engineering Services, concerning back flow preventers on West Fifth Street. During the last flooding events, three (3) residences had sewer backup into their homes. Mr. Grubbs priced the back flow preventer installation cost at approximately $1,452.00. Lee Layman made a motion to proceed with the project, contingent upon approval of the property owners. The motion was seconded by Chris Snively and passed unanimously. Mr. Pryor was instructed to inform Kevin Grubbs to contact the property owners involved and obtain their permission for the installation.

ENTERPRISE AVENUE PUMPING STATION: Mr. Pryor reported that the final design is 95% complete, and that the bid documents could be ready in about two (2) weeks. Mr. Pryor presented plans for the remodeling of the station. Basically the upgrade to the station is replacing the old pumps with new direct coupled pumps, replacing the old comminuter with a Muffin monster, upgrading the electrical and motor controls, and providing exterior access to the existing wet well. The flow valve in the manhole located in Second Street will be automated so the employees no longer have to enter the manhole to divert flows to WTMA. Jon Fleagle questioned the condition of the existing roof. Mr. Pryor stated that, at the time of the engineering study, Gannett didn’t have any concerns (but he would check again) – Jon Fleagle stated that he doesn’t want to do this project and then have to replace the roof in a few years. The approximate cost is $376,000.00, with 86% of the cost being paid for by the Brimington Farms developer. Lee Layman made a motion to authorize Mr. Pryor to proceed with the preparation of the final contract documents, to include a new roof, and begin the bidding process. The motion was seconded by William Pflager and passed unanimously.

WATER LEAK (Zullinger): Mr. Pryor reported that there was a water leak last night in the Zullinger Industrial Park. The contractor uncovered the 8" fire service line and left it open overnight. The valve on the end of the service line blew off. Eugene Barnhart from the Washington Township Municipal Authority asked Mr. Pryor to bill the contractor directly for our time and water loss; and if we were unable to collect, then the Washington Township Municipal Authority would reimburse us. The Authority was agreeable to this.

PAY BILLS: S. Allen Stine made a motion to approve the payment of the following requisitions:

Hollengreen Utilities Escrow Account Requisition #HE-06 - Gannett Fleming Companies - $4,728.84 - Design Phase engineering services relative to the Enterprise Avenue Wastewater Pumping Station Upgrade for the period of September 2, 2006 through September 29, 2006

Hollengreen Utilities Escrow Account Requisition #HE-07 - Gannett Fleming Companies - $2,604.73 - Design Phase engineering services relative to the Enterprise Avenue Wastewater Pumping Station Upgrade for the period of September 30, 2006 through October 27, 2006

Hollengreen Utilities Escrow Account Requisition #HE-08 - Gannett Fleming Companies - $2,313.43 - Design Phase engineering services relative to the Enterprise Avenue Wastewater Pumping Station Upgrade for the period of October 28, 2006 through November 24, 2006

Water Requisition #07-01 - Gannett Fleming Companies - $151.98 - Annual services of the Authority’s consulting engineer as authorized under the Annual Services Agreement for the period of October 28, 2006 through November 24, 2006

Water Requisition #07-02 - Reichard Law Offices, LLC - $1,501.19 - Professional services for October, November and December, 2006

Water Requisition #07-03 - Borough of Waynesboro - $500,301.00 - 1^st Quarter Water Allocation

Sewer Revenue Fund Requisition #SA-33 - Borough of Waynesboro - $150,000.00 - Sewer Allocation

Source Development Fund (Water Requisition) #SD-145 - Gannett Fleming Companies - $748.21 - Preliminary design of Well No. 2 membrane facilities to support permitting approvals for the period of October 28, 2006 through November 24, 2006

William Pflager seconded; the motion passed unanimously.

Having no further business to discuss, Allen Stine made a motion to adjourn at 9:50 p.m. Christopher Snively seconded; the motion passed unanimously.

Respectfully Submitted,

Scott Crum

Draftsman-Inspector